In practice, drawing the boundaries of industries and markets is:
A)A matter of personal preference on behalf of top managers
B)Almost impossible to carry out with rigor because it requires many "rules of thumb" and approximations
C)Largely a matter of judgment and experience contingent on the purpose of the analysis
D)Critical to the output of the analysis and therefore should only be undertaken with the help of an academic or consultant

Question

Quizplus · Accepted Answer

Drawing the boundaries of industries and markets is largely a matter of judgment and experience contingent on the purpose of the analysis. There are no fixed rules or universal standards to follow. Boundaries often need to be approximated and adjusted as needed. It is important to have a good understanding of the industry and market dynamics and to consider multiple factors such as product/service offerings, customer segments, competitive landscape, and supply chain relationships. Top managers can provide useful insights, but input from various functional experts and external sources may also be needed. It is not necessary to have the help of an academic or consultant, but their expertise may be helpful in some cases.

In Practice, Drawing the Boundaries of Industries and Markets Is